Strategy suspends Bitcoin purchases and doubles repurchase plan

Strategy expands the size of its digital credit securities repurchase program to US$2 billion and instead increases its preferred shares instead of Bitcoin.

On September 8, Strategy announced that it would double the authorization of its digital credit securities repurchase program from US$1 billion to US$2 billion. During this period, the company spent $176.3 million to buy back STRC preferred shares rather than acquiring more Bitcoin.

Overview of trading activity for the latest week

During the latest weekly reporting period, Strategy did not purchase any bitcoins and did not sell any shares through a market-to-market offering (ATM) program. The company used existing U.S. dollar cash to complete a $176.3 million repurchase of STRC preferred shares, totaling 1,810,885 shares. According to filings filed with the U.S. Securities and Exchange Commission, these repurchases occurred between August 31 and September 7.

As of September 7, the number of bitcoins held by Strategy remained unchanged at 845,050. The total acquisition cost of these bitcoins is US$63.73 billion (including fees and expenses), with an average cost of approximately US$75,412 per bitcoin. The company's total U.S. dollar reserves are US$5.10 billion, of which US$1.44 billion is available in cash.

Strategic focus shifts to STRC repurchase and capital structure management

STRC (officially known as Variable Rate Series A Perpetual Stretch Preferred Shares) is one of the multiple preferred securities used by Strategy in its bitcoin-centered capital structure. The security has a par value of $100 and pays a variable cash dividend. Strategy official information shows that the annualized dividend yield recorded since September is 12%.

Strategy has been committed to keeping STRC trading prices close to their face value. Buying shares at less than $100 not only helps reduce the number of preferred shares in circulation, but also allows buybacks to be completed at a cost below face value. The average price for this latest repurchase is approximately $97.36 per share. Although the STRC closed at $98.04 on September 8, it was still slightly below the face value of $100, but above the average transaction price for this repurchase.

The board of directors has increased the total amount of preferred securities repurchase authorizations from US$1 billion to US$2 billion. This total includes commissions, fees, expenses and all purchases made under the plan. The remaining $1.19 billion in authorization is not mandatory expenditure, and future purchases will depend on market prices, available liquidity, and management or board decisions.

Bitcoin positions remain unchanged, cash reserves support future operations

The absence of Bitcoin purchases this week does not represent a fundamental change in the company's treasury policy, but only a one-week suspension. Previously, Strategy had purchased approximately $370 million in Bitcoin. Since 2026, its Bitcoin positions have fluctuated as the company begins to manage capital with a combination of equity issues, cash reserves and selective Bitcoin sales. For example, an August filing showed that Strategy sold 1,638 bitcoins for $104.7 million and used the funds to pay STRC dividends, buybacks and dollar reserves.

As of September 7, Strategy reported a dollar reserve balance of approximately $5.10 billion. This restricted use pool is mainly used to support preferred stock dividends and interest payments on outstanding debt. After deducting repurchase expenses, the separately available US dollar cash balance was US$1.44 billion. Management can use this cash for Bitcoin purchases, additional reserve injections, or general corporate purposes.

It is worth noting that US dollar reserves are mainly used for fixed financial obligations, while US dollar cash gives management broader flexibility, but the amount is reduced due to Bitcoin purchases or securities repurchases. Strategy's dollar reserves grew rapidly, at $3.75 billion at the end of July, when the balance was said to cover approximately 2.1 years of expected preferred stock dividends and debt interest.

Market Reaction and Outlook

Since no additional MSTR common or preferred stock was issued through ATM plans this week to finance Bitcoin purchases, this suspension, while reducing immediate dilution, did not provide new capital through these plans. On September 8, MSTR shares closed at $136.52, down $6.28 (4.40%). Bitcoin and other cryptocurrency-related stocks also fell on the same trading day, so this trend cannot be attributed solely to Strategy's disclosure.

The next update will show whether Strategy resumes Bitcoin purchases, continues with more STRC repurchases, or returns to the ATM program. The company has not yet committed to a specific transaction or spending schedule.